No dividend for Real shareholders again

Real Insurance Company of Malawi Limited has registered a pre-tax profit of K140 million, a drop from the previous year’s K242 million, according to published financial result.
The profit reduction has compelled the company’s board not to recommend payment of dividend, saying this has been done to build up retained earnings.

Likewise, the firm did not pay dividend in the previous year due to insufficient distributable reserves, which resulted from the previous year’s accumulated losses.
British American Investments Company (Kenya) or Britam, an East African financial services firm, last year acquired 99 percent stake in the insurance firm’s parent company, Real Insurance Group of Kenya, which has 65 percent shareholding in Real Insurance Malawi.
Real said the business environment in Malawi in the previous year was characterised by high inflation and interest rates, resulting in low business growth.
Despite the economic challenges, the firm said the performance of the company for the ended year was good.
Its assets grew by 19 percent from K 1.7 million to K 2 billion and registered a 34 percent increase in written premiums from K2 billion to K2.7 billion.
The company has also registered a 20 percent growth in investment income from K165 million to K196 million and a 130 percent growth in share price from K1 to K2.30, according to the statement signed by board chairperson Thomas Kanyuka.
“We wish to thank all stakeholders for their unwavering support, the board of directors, management and staff for their hard work, contribution and continued support as the company completes the turnaround strategies and works on sustainable growth,” said the statement.
Going forward, the company, whose strategy focuses on growth in profitability and market share, says it continues to bear fruits.
The firm has praised the partnership with Britam, saying it capitalise on the new relationship to attain sustainable growth in shareholders’ value.
“This is a very positive development as it positions the company to get strong support and enjoy synergies from an experienced pan-African financial services group, which has interests in life insurance, property and casualty,” reads the statement.